Library Board approved April 19, 2006. Revised June 23, 2020. Revised February 24, 2026.
Library funds not assigned in the General Fund (Operating Fund) or special purpose funds, such as the Art Fund, are referred to as unassigned funds.
The unassigned fund balance serves two purposes:
- It provides a working cash buffer to fund library operations prior to receipt of tax collections and when property tax collections are delayed.
- Balances beyond those required for managing the annual cash flow requirements of the library may provide a funding source for infrequent major capital purchases, major automated system upgrades, and other one-time capital expenditures, or for unanticipated opportunities that may arise from time to time.
The unassigned fund balance increases as a result of year-end surpluses in the General Fund.
The unassigned fund balance decreases as a result of year-end deficits in the General Fund, which may arise from, for example:
- Payment of major capital purchases and building / opportunity expenses from the fund.
- One-time expenses for extraordinary capital and other items
- Spending in anticipation of borrowing, or to reduce the debt level and thus the tax levy
Funds from the unassigned fund balance will not be relied upon to subsidize recurring operating expenses.
The Library does not maintain a Working Cash Fund to mitigate intra-year cash shortfalls that could arise. Accordingly, the goal for the Library is to maintain an unassigned balance in the General Fund at fiscal year’s end within the range of 50% to 75% of the General Fund expenditures for the year excluding bond debt payments and one-time capital expenditures funded from the unassigned fund balance. Funds in excess of 50% may be considered available to be budgeted for extraordinary, one-time and capital expenditures.
The Board shall establish a budget each year that sustains an unassigned General Fund balance of at least 50% of operating expenditures. In any year that the unassigned General Fund balance falls below 50% of operating expenditures, the Board shall institute a plan for restoring the balance within three years or less, by increasing revenues, decreasing expenses, or a combination of both.
It is the intention of the Board to budget for and accumulate sufficient funds so that the capital and programmatic needs of maintaining library infrastructure can be met as they arise. In the event that such demands require that the Library accumulate funds in excess of 75% of General Fund expenditures, the Board shall formally assign the excess as such, and segregate and accumulate the excess in a Special Reserve Fund established by the Library for such purposes. The Board may additionally transfer funds to the Special Reserve but only to the extent the unassigned fund balance remains above 50%.
Capital needs of the Library shall first be met by spending assigned funds in the Special Reserve Fund and second from unassigned fund balance. Should payment for the capital needs be projected to require that the unassigned General Fund Balance fall below 50%, the Library shall consider borrowing options for the capital project in order to maintain the General Fund Balance above 50%, which may include issuance of bonds by the Village of Oak Park on the Library’s behalf.
The fund balance will be reviewed annually, both prior to the adoption of the budget as a part of the budgeting process and in January of each year.